For most FHA purchases with less than 10% down, annual MIP lasts for the life of the loan. If you put 10% or more down, MIP is typically required for 11 years. Knowing which rule applies changes the long-term cost math.
Your original down payment usually decides how long monthly MIP sticks around.
Most 3.5% down FHA purchases keep annual MIP for as long as the FHA loan remains outstanding.
When original LTV is 90% or less, annual MIP is generally required for 11 years.
Hitting 20% equity does not work like conventional PMI cancellation on most FHA loans.
Loan amount, term, and LTV at origination feed into which schedule applies.
Moving to conventional (or another product) is often how borrowers exit life-of-loan MIP.
Life-of-loan MIP is not a deal-breaker — but it should be intentional.
Typical rules for current FHA purchase loans.
Your hold period should drive the program — not the other way around.
Step 1
Life-of-loan vs. 11-year based on LTV.
Step 2
How long will you keep this mortgage?
Step 3
When equity and credit support a conventional exit.
Step 4
Pre-approve on the payment that includes MIP.
Related guides to help you compare options and move toward pre-approval.
2MG Daily
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On most current FHA purchase loans with less than 10% down, annual MIP lasts for the life of the loan.
Annual MIP is typically required for 11 years when the original LTV is 90% or lower (10%+ down), assuming the loan remains FHA.
Not automatically. Unlike conventional PMI, FHA does not simply drop MIP at 20% equity on most low-down loans. A refinance into conventional is often the exit.
Sometimes a partial refund of upfront MIP can apply if you refinance to another FHA loan within a limited window. Ask us to check your specific timeline.
We will show whether your file falls under life-of-loan or 11-year MIP — and when a refinance might make sense.